Not offered advertised rate - but will price match. Worth getting another quote?

lordzargon

I'm in the process of buying a new car.

I saw Sainsburys Bank's advertised rate of 3.6% (now 3.5%) APR, and so I hopped on to Experian to find my credit score was 999/999. On Sainsbury's Bank 'soft search', they said I had a 90% of being offered that rate. As Sainsbury's Bank said Experian was also their preferred credit agency, I put in an application.

I've been accepted, but on a rate of 4.5% APR. Disappointed with that, to say the least.

I bank with Nationwide, they're advertising 3.6%, and as I've applied through Sainsbury's Bank, they will beat any rate I'm offered elsewhere by 0.1%.

However, the Sainsbury's Bank application has left a search on my credit history, that I can only assume will affect Nationwide's quote?

So, with all that in mind - is it worth applying through Nationwide for a quote (which their soft-search tool says I would get 3.6% - although Sainsbury's said the same) - or is the additional credit search going to be too detrimental?

I have no intention of taking out credit other than for this car, in the near future. We actually have enough cash to buy the car outright. But with my wife pregnant with our second child, having the money saved put away the bank is preferred to having the car but no savings (given we can comfortably afford the repayments).

Thanks,

Tixy

If you are not expecting to need to make any further applications soon then I don't think it would hurt to try an application with nationwide.

But I wouldn't try elsewhere after that.
And if you do end up with the 4.5% it is still a pretty competitive rate.

Pixie5740

Nobody here knows. We don't know what criteria Nationwide use and we don't know what is on your credit files so the only way to find out is to apply.

It just goes to show, one again, that the Experian credit score is pointless since it's not a universal credit score and Experian don't lend money.

jonesMUFCforever

I would take 4.5% APR any day.

Jon_B_2

I'm gobsmacked you went with Sainsburys in the first place. Nationwide have your banking history and you would have had a lot more chance of getting their best rate.

Jon_B_2

BTW who is sniffing at 4.5%?!


I took out a 8.5k loan nearly two years ago with Nationwide with their best rate which was market leading at 4.9%...

DCFC79

I don't understand why your score of 999 didn't mean other lenders were willing to help.

Look your score of 999 means nothing, no one sees it and hence why it doesn't entitle you to get the headline rates.

The 4.5% is good, don't know why you turned it down.

lordzargon

I haven't turned it down - I haven't even received the forms to sign & send back.

I initially went with Sainsburys Bank as they were offering a better headline rate than Nationwide. Based on the assumption that the soft-search said I was likely to get that, and I had an excellent credit rating, it made sense to give it a try.

Neither am I sniffing at it - I was just wondering whether its worth seeing if Nationwide would offer a better rate than the 4.5% offered, (which Sainsburys would then beat), or whether the additional credit checks on my record would be too detrimental (in people's experiences).

Thanks for the replies all the same. I'll sleep on it.

(incidentally, its my first time applying for a personal loan, I'm only 27 - so go easy... )

Paully232000

I would agree that it cant do much harm to try one more time with nationwide, to see what rate they offer, especially if you are not planning on applying for any more credit in the near future. Even if you were I would still say two is nothing to get worried about. Trying 3, 4, 5 times would be more problematic.

Pixie5740

27, so you've been an adult for quite some time then.

andyfromotley

Hi lord,

i have seen plenty of posts by people who were knocked back by Sainsbury for the headline rate and offered a much higher rate, often 7-10 % !! So 4.5 may not be too bad.

One thing crosses my mind though, you are quibbling about a relativeley small difference. Assuming 10k over 3 years the extra interest charged amounts to £139. however you are taking out a loan that you dont actually need and paying a minimum of £555 in interest, (£694 at the higher rate) just in case you need your savings, Thats a much more significant hit.